Essay on Nike Globalization

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Essay on Nike Globalization

Leading

Identify the leadership approach used by the manager in making sure that your employees are working towards achieving the goals of his/her organization. Relate your answer with any leadership theories studied in this course.

Leadership programs gradually developed popularity over the last century as a consequence of the organization’s gains. Leadership programs gradually developed popularity over the last century as a consequence of the organization’s gains. After being identified as a crucial factor in Nike’s accelerated level of development, several organizations also intensified their emphasis on the curriculum. Distributed governance is among the new trends. Shared leadership is indeed an approach that commonly distributes management and administration-related duties. It is thus similarly the responsibility of team leaders as well as organizations to determine the success adopted. The formation of various approaches accurately describes those of symmetrical leadership, instead of an organization; this is a faceoff from efficient hierarchical leadership that focuses on a single leader. Nike, an international company specializing in the production of footwear and sports equipment, is the target of this evaluation.

Statistics on Nike’s Leadership

It is observed that throughout the United States, Nike owns 48% of the athletic footwear business. Nike owns 96 percent of the market exclusively for basketball shoes. See below for a 96 percent Nike index. Nike’s revenue from sales rose to 32.46 billion in 2016. Below is a graph showing Nike’s global sales in USD from 2005 to 2016.

More data on consumer success relevant to Nike In 1996, Nike’s sales revenue amounted to $6.4 billion, rising to $32.46 billion in 2016. Nike is a global athletic footwear market with 31 percent. Globally, there are 700 Nike stores. There have been 45 countries with a Nike office. 13.

Decision making

Nike’s management of operations is concerned with forecasting controlling designing, handling, and scheduling business operations in Nike footwear productions The excellent governance, developed and improved over the long term, has enabled business operations to be effective in meeting customer needs, making it one of the key issues that Nike grows prosperously despite fierce competitions with other shoe giants such as Adidas, Reebok, Puma, etc. The servicing management system includes production and manufacturing systems, equipment maintenance management, manufacturing control, industrial labor relations, and skilled trades. supervision, strategic manufacturing policy, systems analysis, productivity analysis and cost control, and materials planning.

Nike started with a dispersed production strategy as it is too small to construct its own production line and cannot support recruiting a large number of staff as well. Alright, especially in the U.S. Everything has both sides, and in later dates, its strategy will become its superior It invited European designers to design and manufacture Nike sports shoes through Asian manufacturers. That was its goal at that time to minimize the cost to survive The management strategy was successful and the production cost was greatly reduced. In 1972, Nike had no more than 48 staff compared to 3000 at that time in Adidas. Furthermore, the sales volume increased nearly 1000 times over a period of 12 years, from 1 million dollars to 10 billion dollars, based on such activity management. The forward-looking project management strategy was an important boost for the brand to become America’s largest footwear company.

Problems and issues that Nike has encountered.

The same factors that allowed Nike to prosper at an unprecedented rate over the past few decades, taking advantage of global production opportunities to create lower-cost items and investing these savings in innovative designs and marketing campaigns have created serious problems for the company over the past few years. Nike had been attacked as early as the 1980s for exporting its goods to factories in countries where low wages, poor working conditions, and human rights issues were rife. A string of public relations problems, however, including underpaid workers in Indonesia during the 1990s, Child labor in Cambodia and Pakistan, and poor working conditions in China and Vietnam, combined to Nike’s image tainted. ‘ The Nike brand has become synonymous with slave wages, forced overtime, and unconstitutional bullying,’ as Phil Knight noted in a speech to the National Press Club in May 1998. a company associated with athleticism, health and fitness, and innovative marketing and design, came to become the poster child for the anti-globalization movement providing an interesting window into the potential risks and problems that globalization creates for all multinational corporations. In what follows, we provide not a comprehensive review of the various abuses of which Nike and its suppliers have been accused in recent years, but merely three anecdotal illustrations of the kinds of problems the company has confronted.

Health and safety problems in Vietnam

An Ernst and Young audit of one of Nike’s Korean subcontractors, the Vietnam-based Tae Kwang Vina Company, was leaked in November 1997 to an NGO called the Transnational Resource and Action Centre (TRAC), which had been later renamed Copwatch. Tae Kwang Vina at that time employed more than 9,000 workers and produced more than 400,000 pairs of Nike shoes a month. The Ernst and Young audit at the Tae Kwang Vina plant, commissioned by Nike, reported serious health and safety concerns Toluene levels in other sections of the plants were said to exceed 6 to 177 times acceptable standards. (Toluene is a chemical solvent known to cause liver and kidney depression and various skin and eye irritations in the central nervous system) The report also claimed that chemical releases in the plant had generally resulted in numerous cases of skin and heart disease and that health issues were rampant in other areas of the plant due to excess dust. Personal protective equipment at the factory and working conditions were not provided, and work hours at the plant were in violation of Nike’s code of conduct, according to the reports.

News of this report, which appeared in the New York Times and other leading newspapers, sparked a further wave of anger over Nike’s relationship with its suppliers. This incident was particularly damaging to Nike as the report came from Ernst and Young, a leading accounting and consulting firm that Nike had hired to audit the factories of its suppliers. However, as part of a study tour of Nike suppliers supported by the corporation, the Tae Kwang Vina factory had been one of the factories former UN Ambassador Andrew Young had previously visited. Young did not mention the serious health and safety issues at the plants in his report on Nike’s suppliers. In short, More than another example of poor working conditions at one of Nike’s factories, this episode tested the sincerity and dedication of the organization to labor and industrial health standards. Combined with all of the other things reported in the press, these three events created a major public relations problem for Nike (Appendix C records the number of negative Sports reports that appeared in major publications.) Increasingly, the environmental problems in Nike’s distributor factories have become a major issue for Nike itself. Such incidents have made Nike a goal for the movements against globalization and anti-sweatshop. Most NGOs decided to focus most of their attention on Nike and its multiple suppliers’ problems. Websites focusing solely on Nike and its alleged abuses existed on the World Wide Web where NGOs and numerous activist groups used it to share information, promote movements, and shame the business further. Boycotts of Nike items and pickets became organized at Nike stores by customers and labor groups. Several campuses canceled their orders with Nike to create college athletic products under pressure from several student groups. The hard-earned brand of the company began to tarnish as a result of these specific activities.

Recommendation and Conclusion

Explain what you have learned from the discussion with your group members and recommend ways the organization could improve its management in the long run.

Recommendation

Nike today reported some key strategic shifts under its management group aimed at achieving certain very important core business priorities. Inside the fashion sector, Nike is highly revered for its relentless creativity from product design and distribution chain planning to direct marketing for customers.

Nike’s recognition for ingenuity, productivity, and imagination in every area of its industry is very well-deserved as the most successful and popular apparel company in the world. We have gained this prestige by continually re-evaluating their business strategic position but not being afraid of making significant changes to strive to succeed.

Examine continually how best to manage the strategic objectives

Time to spend time thinking objectively about just how efficiently the current processes, processes, and product offerings reach your goals. When something doesn’t work, figure out where to make things work. If something functions, look for opportunities to make this work stronger.

Develop a changing economy

If your company expects continuous science, individuals can keep seeking ways of improving the industry. Switch the standard back to make everything easier to change Develop standards that change will happen on even a continuous basis and enable everybody in the organization to contribute in any way to the process of identifying the change. It will also build strong workers.

Just interrupt development and improvement

Nike has now been devoted entirely to continually changing the business processes to drive innovation more successfully, increase efficiency, improve efficiency, and produce new products and services, and subject matter.

Eliminate Enjoyment

Apathy can often be convenient. By removing cynicism and creating an atmosphere of constant meaningful change, senior management respectively have become much more creative.

Secure your asset number one

Nike commonly employs the senior management group from inside the firm, which is the case these days, and they are doing it even though they buy shares for a substantial amount of time and money from the employees. Establishing a committed as well as groundbreaking working population may guarantee the company’s consistency and development far beyond the moment that you are here.

With any of these adjustments, Nike tells the world that development has not yet been achieved and the business is not afraid to implement the changes it deems fit to stay the greatest. Its company management expresses its contribution to competence and quality improvement

This year’s alterations represent Nike’s emphasis on consumers through speeding up entrepreneurship, enhancing the layout, establishing product & marketing greatness, and concentrating substantially on effective distribution chain as well as production capabilities.

With both the value chain for Nike specifically, we also went a long way to making the company processes more productive but also providing customers with innovative foodstuffs and characteristics. For example, the Nike ID technology allows customers to make bespoke Nike shoes, equipment, and garments offline without the need for a minimum purchase quantity for a high premium above standard retail price levels for semi-customized products.

Conclusion

Working for a company as broad as Nike is definitely not a good task, as management can satisfy not only the shareholders of the company but also the stakeholders. No matter what happened, Nike also learned its lesson. Remaining competitive and holding manufacturing costs at a low level should not be the sole goal of the product. Nike’s reports of poor conditions and child labor have now become a global issue because of its misconduct in some locations. However, Nike never gave up and continued to win back the hearts of its stakeholders by carrying out a lot of CSR. Even though there may be a long way to go in the area of corporate responsibility, it can be seen that the industry is slowly receiving good responses. Nike will still remain a major brand around the world.

Nike seems to be a tournament-based company. From outfitting sports people with both the best sports technology in the world to continuously improving someone else’s financial results, Nike continues to dominate the suppliers. Phil Knight and Bill Bowerman definitely couldn’t have envisioned in 1962 how much the $500 expenditure could have yielded in 2000. We realized which quality of products and creativity would enable sportsmen to achieve higher objectives. Now, Nike even runs on the above ideology. It is something that has enabled both competitors and shareholders to appreciate sporting and economic grandeur. To get rid of the altering consumer market for athletic shoes, we should continue to increase our product range and meet merchandising to be a more potent global powerhouse.